Gift and Souvenir Stores NAICS 459420

Sep 8, 2025 - Small Business Index Holds Steady

• According to a report in Chain Store Age, consumers are continuing to shop at small businesses, which make up a significant portion of gift and souvenir shops, in August 2025, as they remain cautious about spending. The Fiserv Small Business Index for August showed month-over-month sales were mostly unchanged despite a 1.4% increase in foot traffic. Average ticket prices fell 1.5% in August compared to July, as consumers prioritized value-driven purchases. On a year-over-year basis, sales rose 3.9% and average ticket sizes were up 0.3% in August 2025. According to Prasanna Dhore, chief data officer at Fiserv, “August saw consumers continue to show up to small businesses, but often spending less at checkout compared to July.” The Fiserv Small Business Index is compiled from point-of-sale transaction data across 2 million US small businesses.
• Indicators measuring the collective mood of US consumers showed a downward turn, with consumer confidence and consumer sentiment levels falling. Consumer confidence levels, an indicator of discretionary expenditures, declined in August 2025, month over month, falling by 1.3 points, according to the Consumer Confidence Index. Consumer confidence levels were lower in August, but remained similar to levels in the past three months, according to The Conference Board, which publishes the monthly index. August’s loss can be attributed to consumers under 35 years old, while confidence levels rose for consumers over 55. In addition, the consumer sentiment index from the University of Michigan dropped in August 2025 for the first time in four months. The index fell to 58.2 in August data from 61.7 in July. Year-ahead inflation expectation results were higher monthly, as consumers convey lingering anxiety about prices amid tariff impacts. The index serves as a predictor of consumer spending as it indicates consumers’ perception of their financial prospects and the broader economy.

• The Retail Trade Industry is one of 12 industries reporting growth in August’s Services ISM Report on Business. Executives in the Retail Trade industry reported an increase in business activity, new orders, prices paid for materials and services, and inventories, along with faster supply deliveries and a decrease in order backlogs in August. Additional industries reporting growth during the period were Information; Wholesale Trade; Arts, Entertainment & Recreation; Mining; Transportation & Warehousing; Educational Services; Professional, Scientific & Technical Services; Utilities; Health Care & Social Assistance; Public Administration; and Real Estate, Rental & Leasing.. Four industries reporting contraction during the period were Accommodation & Food Services; Management of Companies & Support Services; Other Services; and Construction. Overall, economic activity in the services sector grew in August for the third consecutive month, with the Services PMI registering 52%.
• Sales for the US gift and souvenir stores industry are projected to grow at a CAGR of 1.99% between 2025 and 2029, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The expected growth rate is slower than the overall economy‘s anticipated growth. The retail and wholesale sectors are driven by consumer spending, along with expenditure by businesses and government. A factor that may limit consumer spending is higher tariffs on consumer goods. On a positive note, lower inflation supports a moderate increase of real disposable income by about 2% in 2025 and 1.9% in 2026. Real income could suffer to an extent if average prices rise due to tariff implementation. The forecast said retail spending could soften with the growth of spending on consumer services such as travel and live entertainment. An increase in tourism can help boost traffic at gift and souvenir stores.